Times are challenging for all consumers, especially for small business owners. Nowadays, people have cut their spending to necessities while many consumers have been laid off with small businesses being shut. The new economic crisis made thousands of entrepreneurs seek additional financial assistance to help their ventures remain monetary afloat in such tough times.
Small enterprises are the ones being affected the most by the current pandemic. While consumption habits have already changed, below are some available funding options and grants from the government and the private sector.
The Impact On Small Businesses
Thousands of small ventures have been negatively affected by the current pandemic. People are trying to lower their expenses so that entertainment, going out, and travelling costs aren’t on their spending list anymore.
While people are learning to become more frugal, it has impacted small business owners who don’t have profit now. Many businesses have already been closed but the majority of them are still trying to survive. Regular consumers have also lost their jobs with women being the most vulnerable stratum of the population.
It’s not easy to keep on paying salaries to your employees, pay the monthly bills, or cover the rent payments when you have no income. Many entrepreneurs need to renew their business model and rethink new ways of building their companies.
There are many grants available to consumers today which may assist your business and help it stay afloat until the situation becomes more stable again. There is a variety of grants, so you may have a closer look and select the most suitable option. We are going to tell you about the best offers and assistance programmes.
Interesting fact: Last year, the number of small businesses in the U.S. reached 31,7 million
American Rescue Plan Act
You can find information about COVID-19 relief options offered by the US Small Business Administration. There are several grants available for consumers and small business owners for the period of the pandemic. Also, you may look through the American Rescue plan Act signed into law by President Biden.
It was signed in March 2021 allowing entrepreneurs to obtain additional funds from the government including $7.25 billion for the Paycheck Protection Programme. Industry-oriented grants allow restaurant owners to qualify for $28.6 billion from the Restaurant Revitalization Fund. Such pandemic relief grants and assistance programmes are designed to help small business owners survive during the quarantine.
The only drawback of such government-issued programmes and grants is that they require lots of paperwork. So, they are quite time-consuming for the borrowers. If you value your time and don’t want to waste it on submitting multiple documents and applications, you may opt for alternative assistance programmes and small business loans from online creditors.
Alternative lending solutions are also popular today as they let common consumers and even unemployed people obtain urgent monetary aid. For instance, 2500 personal loan bad credit is widespread among those who have lost their jobs or simply need urgent money.
While entrepreneurs may apply for special grants and programmes from the government, unemployed mothers and parents may also qualify for financial assistance from alternative lending services. Such small loans are meant to support their needs during challenging times and help them fund their daily needs until they find a suitable job again.
Top Government Grants And Assistance Programmes
The above-mentioned government website offers a wide choice of grants and assistance programmes for small businesses in different industries. The money flows straight from the federal government to ventures.
Certain funding is divided between local and state governments, not-for-profit organisations, etc. So, you may choose between various options and apply on the state or local level. Here are some of the most popular grants available today:
- Small Business Innovation Research Programme (SBIR). If your venture is eager to take part in federal research and expand further in this sphere, you may qualify for this programme. This grant is very competitive and is designed to assist small businesses in reaching their research and scientific goals.
Make sure your venture is profitable and meets additional demands and requirements before you apply. There is some paperwork required to apply for this grant so you should learn about the necessary papers beforehand.
- USDA Rural Business Enterprise Grant Programme. This grant is available for those located in the rural areas of the country. It offers training and assistance to ventures with less than 50 employees and up to $1 million in gross revenue. This is a great support programme for projects in small towns, higher education institutions, nonprofits, etc.
- US Small Business Administration State Trade Expansion Programme (STEP). If you want to grow your company and export your goods abroad, it may be a great option for you. This grant allows small business owners to develop their ventures and export various products. The funding is divided between state entities.
You should ensure your business meets the demands and eligibility criteria to obtain extra cash. This way, you will be able to develop your company, enter foreign markets, take part in trade shows abroad, and create international campaigns.
- Women-Owned Small Business (WOSB) Federal Contracting Programme. This grant is available for women-owned small companies. You may obtain additional financial support through this programme and fund your business needs. This programme also offers funds for counselling, training, and access to extra capital so that women have equal opportunities in small businesses. So, if you’ve been laid off and seek extra financing, you may either obtain a small personal loan for the unemployed women mentioned above or qualify for this assistance programme.
All in all, there are many funding grants and assistance programmes available today for small business owners. Take some time to review the most popular funding options and select the one that meets your current financial needs.
Depending on several qualifying factors, you may either get approved for one of these government-issued grants or apply for a small business loan from alternative creditors. Such funding options are designed to help entrepreneurs support their business needs during an economic crisis.
